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Accounts payable or accounts receivable: which junior role should I target?

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Two young colleagues at a shared office desk, one checking a printed supplier invoice while the other talks on the phone in front of a spreadsheet

Accounts payable vs accounts receivable in Australia: what each junior role does, the ATO and scam rules each deals with, and how to pick one to target.

If you are looking for your first accounting job in Australia, you will see two job titles again and again: accounts payable and accounts receivable. Both are common starting points, and both sit in the same finance team, but the daily work is quite different. One side pays the bills. The other side brings the money in. This guide explains what each role does, the Australian rules each one deals with, and how to decide which one to target first.

The short answer

  • Accounts payable (AP) looks after money the business owes. You receive and check supplier invoices, get them approved, schedule payments and keep supplier records up to date.

  • Accounts receivable (AR) looks after money owed to the business. You raise customer invoices, follow up overdue accounts, record payments and keep the customer ledger reconciled.

Jobs and Skills Australia's Accounting Clerks occupation profile covers both. Its task list includes preparing and processing documentation for accounts payable and receivable, reconciling invoices and sending payments, and preparing bank reconciliations. In smaller businesses one person may do both, and some ads combine them under titles such as "Accounts Payable/Receivable Specialist".

What an accounts payable officer does

A typical AP day is about checking before paying. Common tasks include:

  • Receiving supplier invoices and matching them to purchase orders and delivery records

  • Sending invoices to the right manager for approval

  • Entering approved invoices and preparing payment runs

  • Answering supplier questions and fixing discrepancies such as wrong prices or missing credit notes

  • Reconciling supplier statements against the ledger

Australian rules AP staff work with

Tax invoices. The ATO's tax invoice guidance lists seven details a tax invoice for a taxable sale under $1,000 must show, including the seller's identity and ABN, the date, a description of what was sold and the GST amount. For sales of $1,000 or more, the invoice must also show the buyer's identity or ABN. AP officers check these details so the business can rely on the invoice.

Supplier ABNs. The ATO says a business that supplies you with goods or services should quote its ABN to you. If a supplier does not quote one, the payer generally has to withhold the top rate of tax from the payment and send it to the ATO, unless an exception applies. One exception the ATO lists is a total payment of $75 or less, excluding GST. If an ABN looks wrong, it can be checked on ABN Lookup.

Payment scams. AP teams are a target for fake invoice and business email compromise scams, where a scammer pretends to be a real supplier and changes the bank details. Scamwatch advises checking any change to payee details by contacting the business on a phone number you found yourself, not one from the email. Knowing this, and saying so in an interview, shows you take the role seriously.

What an accounts receivable officer does

A typical AR day is about getting paid on time while keeping customers on side. Common tasks include:

  • Raising and sending customer invoices

  • Recording customer payments and matching them to the right invoices

  • Following up overdue accounts by email and phone

  • Answering customer questions and sorting out disputed invoices

  • Reconciling the AR ledger and reporting on overdue balances to management

Australian rules AR staff work with

Issuing tax invoices. The same ATO guidance says that if a customer asks for a tax invoice, the business must provide one within 28 days, unless the sale is $82.50 (including GST) or less. AR officers often handle these requests.

Chasing debts fairly. The ACCC and ASIC have published a joint debt collection guideline. It explains how consumer protection laws apply to debt collection, and it is written for creditors who collect their own debts, including in-house collection teams, as well as external agencies. If your AR role involves chasing individual customers, expect your employer to want polite, accurate and non-threatening follow-up.

What both roles have in common

  • Reconciliations. Both sides need to make the ledger agree with bank records and statements.

  • Record keeping. The ATO's record-keeping rules say businesses need to keep most records for 5 years. Invoices, payment records and statements are part of that, so accurate filing is part of the job.

  • Accounting software and spreadsheets. Ads usually name the system they use. Match your resume to it where you honestly can.

  • Communication. AP talks to suppliers and approvers. AR talks to customers. Both need clear, professional emails and calls.

How to choose which role to target first

There is no single right answer, and many people move between the two. Think about where your strengths are:

  • AP may suit you if you enjoy checking details, matching documents and following a process carefully, and you prefer working mostly with internal approvers and a list of suppliers.

  • AR may suit you if you are comfortable on the phone, can stay calm when a customer is unhappy, and like the idea of following an account until it is paid.

  • Apply for both if you are early in your search. Many ads combine the two, and understanding both cycles makes you a stronger candidate for either.

Whichever you choose, be ready to explain the full cycle in an interview: for AP, how an invoice is received, checked, approved, paid and recorded; for AR, how an invoice is raised, followed up, paid and reconciled. Our guide on how to get a junior accountant job in Australia covers the job titles to search for and what employers check, and our accounting resume guide shows how to present AP and AR skills when you have no local experience yet.

How Job Ready Master can help

Our Junior Accounting Program covers both roles. In the practical training step, week 1 focuses on the tasks of an accounts receivable officer and week 2 on the tasks of an accounts payable officer. Weeks 3 and 4 are mock tests that simulate a day in each role, ending in a reconciliation. The program then moves to resume and cover letter correction, including LinkedIn and Seek profile setup, and one-on-one interview coaching. You can also download our free ebooks and materials.

Not sure whether AP or AR is the better fit for your background? Book a free consultation and we'll talk it through with you.